Welcome!

News Feed Item

CUC Announces Fourth Quarter and Twelve Month Results for the Period Ended December 31, 2013

Caribbean Utilities Company, Ltd. is listed for trading in United States dollars on the Toronto Stock Exchange.

GRAND CAYMAN, Cayman Islands, Feb. 6, 2014 /CNW/ - Caribbean Utilities Company, Ltd. (TSX:CUP.U) ("CUC" or "the Company") announced today its unaudited results for the Fourth Quarter ended December 31, 2013 (all figures in United States dollars).

Net earnings for the three months ended December 31, 2013 ("Fourth Quarter 2013") were $5.8 million, a $1.7 million increase when compared to $4.1 million for the three months ended December 31, 2012 ("Fourth Quarter 2012"). A 6% increase in kilowatt ("kWh") sales, lower operating expenditure and higher other income contributed to the Fourth Quarter increase in net earnings. These items were partially offset by higher finance charges for the Fourth Quarter 2013 when compared to the Fourth Quarter 2012.

After the adjustment for dividends on the preference shares of the Company, earnings on Class A Ordinary Shares for the Fourth Quarter 2013 were $5.2 million, or $0.18 per Class A Ordinary Share, as compared to $3.5 million, or $0.12 per Class A Ordinary Share for the Fourth Quarter 2012.

Net earnings for the twelve months ended December 31, 2013 were $20.4 million. This represents a $2.7 million increase from net earnings of $17.7 million for the twelve months ended December 31, 2012. This increase is attributable to a 1% increase in kWh sales, base rate increases effective June 1, 2012 and June 1, 2013 respectively, lower general and administration and maintenance costs and increased other income.  These items were partially offset by higher depreciation costs for the twelve months ended December 31, 2013 when compared to the twelve months ended December 31, 2012.

After the adjustment for dividends on the preference shares of the Company, earnings on Class A Ordinary Shares for the twelve months ended December 31, 2013 were $19.5 million, or $0.68 per Class A Ordinary Share, as compared to $16.8 million, or $0.58 per Class A Ordinary Share for the twelve months ended December 31, 2012.

For the Fourth Quarter 2013, kWh sales were 140.3 million compared to 132.4 million for the Fourth Quarter 2012. Sales were driven by warmer weather conditions which impacted customer air conditioning usage.  The average monthly temperature for the Fourth Quarter 2013 was 2.7 degrees Fahrenheit higher than the average monthly temperature experienced during the Fourth Quarter 2012.

Electricity sales revenue increased $1.3 million in the Fourth Quarter 2013 to $18.1 million when compared to electricity sales revenues of $16.8 million for the Fourth Quarter 2012. This increase is due to a 6% increase in kWh sales and the 1.8% base rate increase which took effect June 1st, 2013.

For the twelve months ended December 31, 2013 kWh sales were 555.7 million kWh, an increase of 7.9 million kWh when compared to 547.8 million for the year ended December 31, 2012.  Sales were positively impacted by a 1% growth in customer numbers and warmer weather conditions that affected customer air conditioning use.  The average monthly temperature for 2013 was 82.2 degrees Fahrenheit compared to 81.9 degrees for 2012.

Electricity sales revenue increased $2.0 million in the year ended December 31, 2013 to $71.1 million when compared to electricity sales revenues of $69.1 million for the year ended December 31, 2012. The increase in electricity sales revenues for the year ended December 31, 2013 was due to a 1% increase in total customers, a 1% increase in kWh sales and the 0.7% and 1.8% base rate increases effective June 1st 2012 and June 1st 2013 respectively.

Total customers as at December 31, 2013 were 27,364, an increase of 1% compared to 27,035 customers as at December 31, 2012. The Company connected 188 customers for the three- month period ended December 31, 2013. These connections comprised of 159 residential customers and 29 commercial customers.

In December 2013, the Electricity Regulatory Authority ("ERA") approved the Company's 2014-2018 Capital Investment Plan (CIP) in the amount of $143 million for non-generation expansion costs. During this period of continued low growth, CIP initiatives focus on improving reliability of service and operational efficiencies.  Generation expansion projects are subject to competitive bid.

In October 2013 the Company issued a Certificate of Need ("CON") for new generating capacity. This action was driven primarily by the upcoming retirements of some of the Company's generating units which will begin in 2014. The CON listed a requirement of 36 megawatts (MW) of generating capacity, with 18 MW to be operational no later than April 2016 and the remaining 18 MW to be operational no later than May 2016.

In November 2013, the ERA issued a solicitation for Statements of Qualifications from prospective bidders.  The deadline for submissions was December 20, 2013 and the ERA has since announced the listing of qualified bidders and issued a request for proposals.

During the period under review the Company resumed the roll out of new meters as part of the Advanced Metering Infrastructure project. Following the installation of the first 7,000 meters, further installation was delayed to allow for manufacturer software and hardware upgrades.  This project will bring efficiencies in the meter reading and services such as performing disconnects and reconnects directly from CUC's offices, providing real-time electricity consumption information  and a 'pay as you go' payment option to assist consumers with the monitoring and controlling of their electricity consumption. The project should be substantially completed by the end of 2014.

Richard Hew, President and Chief Executive Officer of the Company, stated, "The Fourth Quarter 2013 yielded overall positive results in sales, earnings and other developments with the announcement of the companies which were selected to develop large scale renewables, and the start of the competitive solicitation process for firm generation. Large scale renewables, combined with the replacement of older diesel generators by more efficient and firm generation, will bring price, reliability and environmental benefits to consumers."

During the Fourth Quarter 2013, two Renewable Energy developers were chosen to provide large scale renewable energy to the CUC grid. This process is subject to approval by the ERA of the negotiated final Power Purchase Agreements. New Generation Power ("NGP") has proposed to provide 3 MW of wind generation and 5 MW of solar generation and International Electric Power LLC (IEP) has proposed to provide an additional 5 MW of solar power. It is estimated that the projects will be completed in 2015, barring regulatory or other delays.

CUC's Fourth Quarter Report for the period ended December 31, 2013 is attached to this release.  This report contains a detailed discussion of CUC's unaudited fourth quarter financial results, the Cayman Islands economy, liquidity and capital resources, capital expenditures and the business risks facing the Company. The release and Fourth Quarter Report can be accessed at www.cuc-cayman.com (Investor Relations/Press Releases) and at www.sedar.com.

CUC provides electricity to Grand Cayman, Cayman Islands, under an Electricity Generation Licence expiring in 2029 and an exclusive Electricity Transmission and Distribution Licence expiring in 2028.  Further information is available at www.cuc-cayman.com.

CUC - 4th Quarter 2013 Report

Certain statements in the MD&A, other than statements of historical fact, are forward-looking statements concerning anticipated future events, results, circumstances, performance or expectations with respect to the Company and its operations, including its strategy and financial performance and condition. Forward looking statements include statements that are predictive in nature, depend upon future events or conditions, or include words such as "expects", "anticipates", "plan", "believes", "estimates", "intends", "targets", "projects", "forecasts", "schedule", or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could". Forward looking statements are based on underlying assumptions and management's beliefs, estimates and opinions, and are subject to inherent risks and uncertainties surrounding future expectations generally that may cause actual results to vary from plans, targets and estimates. Some of the important risks and uncertainties that could affect forward looking statements are described in the MD&A in the section labeled "Business Risks" and include but are not limited to operational, general economic, market and business conditions, regulatory developments and weather. CUC cautions readers that actual results may vary significantly from those expected should certain risks or uncertainties materialize, or should underlying assumptions prove incorrect. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

SOURCE Caribbean Utilities Company, Ltd.

PDF available at: http://stream1.newswire.ca/media/2014/02/06/20140206_C8339_DOC_EN_36411.pdf

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, will provide a fun and simple way to introduce Machine Leaning to anyone and everyone. Together we will solve a machine learning problem and find an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intellige...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, will describe how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launchi...
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering ...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, will go over the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, applicatio...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...